Mortgage rates have largely fallen over the past month, with average rates for mortgage purchase loans remaining consistently lower than refinance loans. Overall, it’s a good day to lock in a low rate.
If you’re ready to buy or refinance, you’ll probably want a fixed-rate mortgage rather than an adjustable-rate mortgage. ARM rates are starting higher than fixed rates right now, and you’d risk your rate increasing even more in a few years. It’s safer to lock in an all-time low rate while you can.
Today’s mortgage rates
Conventional rates from Money.com; government-backed rates from RedVentures.
Today’s refinance rates
Conventional rates from Money.com; government-backed rates from RedVentures.
What is a mortgage rate?
A mortgage rate is the interest you pay on the money you borrow from a lender to buy or refinance your home. It’s basically the fee you pay for borrowing, expressed as a percentage. For example, you may take out a $200,000 mortgage, plus a 2.75% interest rate.
There are two types of mortgage rates: fixed and adjustable.
A fixed-rate mortgage locks in your rate for the entire length of your mortgage. Even if rates in the US market increase or decrease, your rate will stay the same. This is an especially great deal right now, as rates are at historic lows.
An adjustable-rate mortgage keeps your rate the same…
